A senior BT executive has questioned the strategic value and £700m price tag for Richard Desmond's Channel 5, effectively ruling out the telecoms giant as a serious bidder for the broadcaster.

John Petter, the head of BT's consumer arm, speaking at an Ad Week Europe session in London on Tuesday, said he could not directly comment on speculation about BT's participation in the Channel 5 auction.

However he said that there was "not a lot to hang your hat on" at Channel 5, and that there are "not many strong programme formats".

When further questioned as to whether this view would rule BT out as a Channel 5 suitor in the short term, Petter said: "It counts us out for any term."

Bidders will have to "put up or shut up" with full, binding bids by 14 April, with Discovery and UKTV co-owner Scripps mooted as interested parties.

Until the bids are officially submitted there is no definitive way of knowing if Petter's comments are not potentially part of a bid tactic to publicly put pressure on Desmond and his bankers, Barclays, over price.

BT's apparent lack of appetite for the broadcaster will be a blow to Desmond, who acquired the business for just £103.5m almost four years ago. He is targeting a £700m sale price for Channel 5, 10 times its estimated profit of £70m this year.

BSkyB is thought to have an agreement with US factual broadcaster Discovery Communications, regarded as the frontrunner to snap up Channel 5, to handle its advertising sales in the event of a deal.

A Sky bid for Channel 5 is regarded as unlikely, with sources suggesting that the satellite broadcaster's biggest shareholder, Rupert Murdoch's 21st Century Fox, wants to keep its "regulatory powder dry" for a renewed run at taking full control of the company.

There have also been rumours that MTV-owner Viacom may not be progressing with a full bid, although this has not been confirmed, taking out another potentially key suitor.

Rumours have emerged that Desmond might also be looking at other options such as a flotation of Channel 5. Some believe the timing of rumours about other potential plans indicates that serious interest in the broadcaster is waning.

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